How To Fix Your Personal Credit

How to fix your personal credit . There are so many people telling you and selling this dream where your credit will be fixed by paying a monthly fee. Well, you can do it yourself.

1. Check Your Credit Reports

Get free copies of your credit reports from the three major credit bureaus (Experian, Equifax, and TransUnion) at AnnualCreditReport.com.

• Review each report for errors (e.g., late payments you didn't make, accounts you don’t recognize).

• Highlight inaccurate, outdated, or duplicated information.

2. Dispute Any Errors

If you find errors:

• File disputes directly with the credit bureaus online or by mail.

• Include documentation to support your claim (e.g., receipts, statements).

• The bureau has 30 days to investigate and respond.

3. Pay Off Past-Due Accounts

Bring any delinquent accounts current.

• Contact creditors to negotiate payment plans or settlements.

• Ask if they will remove negative information once paid (“pay for delete” – not guaranteed but worth trying).

4. Reduce Credit Card Balances (Credit Utilization)

Keep your credit usage below 30% of your available credit.

• Example: If your credit limit is $1,000, keep your balance under $300.

• Pay down balances, not just the minimum due.

5. Pay Bills on Time

Payment history makes up 35% of your credit score.

• Set reminders or autopay to ensure you never miss a payment.

• Even one late payment can hurt your score significantly.

6. Don’t Close Old Accounts

Length of credit history matters.

• Keep older credit cards open (even if unused) to help your credit age.

• Use them occasionally to keep them active.

7. Avoid New Hard Inquiries

Each credit application causes a “hard inquiry,” which can lower your score temporarily.

• Only apply for new credit when necessary.

• Multiple inquiries in a short time can signal risk.

8. Consider a Secured Credit Card or Credit Builder Loan

If you have poor or no credit:

• A secured card requires a cash deposit and reports to the credit bureaus.

• Credit builder loans work similarly by helping you build positive payment history.

9. Become an Authorized User

Ask a trusted person with good credit to add you as an authorized user on their credit card.

• Their positive payment history can benefit your score.

• You don’t need to use the card to gain the credit history.

10. Monitor Your Progress

Use credit monitoring tools (many banks and apps offer them for free).

• Track improvements and spot issues early.

• Aim for a credit score of 700+ for better rates and approvals.